In his more than six months in office, Republican Gov. John Kasich and his GOP colleagues in the
legislature have tackled everything from collective bargaining to allowing guns in bars, crafting
and passing legislation that has stirred strong emotions from supporters and opponents at every
turn.

But for Kasich, inking his name to his first state budget last night was perhaps his
most-cherished achievement during his first term.

"This is the one they said couldn't be done," Kasich said while signing the budget in his
ceremonial office at the Statehouse.

Kasich signed the two-year, $55.8 billion spending plan - considered to be a game changer for
government in Ohio - at 7:56 p.m. The 3,262-page appropriations measure known as House Bill 153
went into effect at midnight.

"We promised Ohioans a new way and a new day, and we're delivering," the governor said.

Kasich also executed line-item vetoes of seven items, including a provision that would have
canceled a voluntary body-mass-index screening program in schools.

Among the other six items vetoed was a provision related to the sale of five state prisons.
Kasich struck from the budget a provision that if the buyer of a prison wanted to later put it up
for sale, the state would have had the right of first refusal to buy back that prison at the
original sale price. Kasich said the provision would have dramatically decreased the prisons' sale
value for the state.

Kasich did not take questions after the three-minute, 15-second budget signing. A news
conference with Kasich, Senate President Tom Niehaus, R-New Richmond, and House Speaker William G.
Batchelder, R-Medina, is scheduled for this morning at the Governor's Residence in Bexley.

The budget, which contained many of the policies included in Kasich's budget proposal from March
15, did not receive a single Democratic vote during its final passage this week.

It effects major changes and cuts to Ohio's schools, local governments, nursing homes, prisons
and development departments, among other areas. The budget also addressed what began as an $8
billion deficit without raising state taxes, and includes tax breaks such as the elimination of the
estate tax in 2013 and a tax credit for those who invest in Ohio companies.

State funding for local governments was cut by about $630 million over two years. Schools were
cut by about $700 million, and nursing homes were docked $340 million.

"On every level, this budget is a complete disgrace," Dale Butland, spokesman for the liberal
policy group Innovation Ohio, wrote in an emailed statement. "By slashing education, it guts Ohio's
long-term competitiveness and mortgages our future.

"By decimating local government funding, it shirks the state's responsibility to help fund
police, fire and other basic services, and fobs it off on local taxpayers."

Speaking earlier yesterday in Findlay, Kasich challenged local governments to cope with their
funding cuts without raising taxes.

"Look, I live in local government. I pay taxes, too," said Kasich, a resident of Genoa Township
just north of Westerville. "There ain't a local government that I know of in this state that can't
be far more efficient. They need to change the way they do business."

Two of the biggest cost-saving components Kasich has long advocated for local governments and
schools, Senate Bill 5 and a pension-cost shift of 2 percent onto public workers, are both in
doubt.

The added pension pick-up was stripped from the budget and will await a legislative review that
likely will take until at least late in the year.

Senate Bill 5, which weakens collective bargaining for public employees, will almost surely be
put on hold until at least after the November election because of a voter referendum.

The budget also requires schools to develop teacher-evaluation systems and mandates that
districts getting federal Race to the Top money institute merit pay for teachers. The budget allows
leasing the state's liquor wholesale operations to JobsOhio, the governor's new
economic-development entity.

"This is not your typical tax-and-spend budget," Linda Woggon, executive vice president for the
Ohio Chamber of Commerce, wrote in an emailed statement. "Ohio leaders were able to close the
deficit without raising taxes and make major progress in reforming the way government operates,
getting Ohio back on track to economic competitiveness."